USD/ZAR to climb towards 15.40 on a break above 14.90 – SocGen

The rand changed course and declined nearly 2% against the dollar this week, returning above 14.50. USD/ZAR could rise as high as the 15.40 level, according to economists at Société Générale.

Positive outlook while above 14.10

“So long as the recent trough at 14.10 remains unchallenged, a deeper down move may not materialize.”

“Holding above 14.10, the pair could head higher gradually towards 14.90 with the next hurdle at a multi month descending trend line near 15.40. This will be a crucial resistance.”